Queen’s Pension Plan Annual General Meeting December 4, 2015

Agenda Members of Queen’s Pension Committee Summary of Pension Plan Membership True vs. Paid Pensions Financial Position of Queen’s Pension Plan – Going Concern Basis Financial Position of Queen’s Pension Plan – Wind-Up/ Solvency Basis Historical Employee and Employer Contributions Pension Plan Asset Reconciliation University Pension Project Update Summary of Plan Assets at August 31, 2015 Returns Compared to Benchmark and BNY Mellon’s Universe Returns Compared to Other Canadian University Pension Plans Manager Presentation: Burgundy Asset Management Questions 2

Members of Queen’s Pension Committee Appointed by Members o James MacKinnon o Bill Cannon o Peggy Hauschildt o Alison Morgan o Lewis Johnson o Kelly Sedore Appointed by Board of Trustees o David Grace o Don Raymond o Peter Copestake o Kathryn Bush o Jill Wagman Ex Officio o Daniel Woolf o Barbara Palk o Caroline Davis o Al Orth o Jim Leech 3

Summary of Pension Plan Membership 4 ActiveDeferred Pensioners and Survivors Total At August 31, 20143,7221,6682,1287,518 New entrants Return to active status Marriage breakdowns Terminations o Transfers/lump sum(45)(52)(97) o Deferred pensions(146)146- Deaths(9)-(67)(76) Retirements o Pension option(98)(24)122- o Lump sum(8)-- New beneficiaries Other---- At August 31, 20153,6501,7382,1867,574

5 True vs. Paid Pensions (projecting at 6%) 5

6 True vs. Paid Pensions (projecting at 8%) 6

Financial Position of Queen’s Pension Plan: Going Concern Basis ($000’s) 7 August 31, 2011August 31, 2014 Assets Market value of assets$1,315,319$1,765,373 Smoothing adjustment$19,686($98,609) Net assets at market value$1,335,005$1,666,764 Liabilities Market value of: - DC accounts$593,045$778,794 - Past service accounts$24,908$25,874 - Voluntary accounts$37,047$41,532 Present value of accrued benefits: - Active members$55,646$66,263 - Pensioners/survivors$750,770$873,151 - Non-Reduction Reserve$56,755 Total liabilities$1,461,416$1,842,369 Surplus (deficit)($126,411)($175,605)

Financial Position of Queen’s Pension Plan: Solvency Basis ($000’s) 8 August 31, 2011August 31, 2014 Assets Market value of assets$1,315,319$1,765,373 Termination expense($2,000) Net assets at market value$1,313,319$1,763,373 Liabilities Market value of: - DC accounts$593,045$778,794 - Past service accounts$24,908$25,874 - Voluntary accounts$37,047$41,532 Present value of accrued benefits: - Active members$112,509$129,182 - Pensioners/survivors$878,079$1,073,366 - Deferred Indexing Reserve$20,436 Total liabilities$1,645,588$2,069,184 Surplus (deficit)($332,269)($305,811)

Historical Employee and Employer Contributions 9

Pension Plan Asset Reconciliation ($000’s) 10 September 1, 2014 $ 1,766,123 PLUS Members’ DC contributions 22,373 University’s DC contributions 18,707 University’s Minimum Guarantee contributions 5,637 University’s Past Service contributions 14,634 Voluntary contributions 1,297 Past Service contributions7 Transfers from other plans 1,593 Investment return 53,883 LESS Pensions paid (83,406) Lump-sums paid (11,576) Administration fees (5,254) August 31, 2015 $ 1,784,018 Gross rate of return3.25% Rate of return net of expenses2.77%

University Pension Project Update 11 Sector Jointly Sponsored Pension Plan Solvency Funding Exemption Mediated Governance and Design Sessions

Summary of Pension Plan Assets (‘000) at October 31, Canadian Equity Global Equity Fixed Income Real Estate Infra- structure Total Assets Percent of Total Assets Burgundy$149, % Guardian$78, % Connor, Clark, & Lunn$83, % TD Asset Management$3, % Letko, Brosseau$51,648$88,350$71,595$211, % Manning & Napier$180, % Orbis$196, % State Street$187, % Connor, Clark, & Lunn$131, % PIMCO$144, % TD Asset Management$135, % Integrated Private Debt$103, % Real Estate – Oxford$89, % Infrastructure - Borealis$94, % Cash/FX Hedging$9,0020.5% Total Assets$336,702$653,237$585,943$89,369$94,409$1,798, % % of Total Assets20.4%36.3%32.6%5.0%5.2%100%100.0%

QPP Returns Compared to Benchmark & BNY Mellon’s Universe of Canadian Pension Plans At September 30 th, 2015: 13 3 Months1 Year4 Years10 Years Queen’s-3.7%2.6%10.9%6.1% Benchmark-2.7%6.3%9.9%5.8% BNY 1 st quartile-1.0%7.8%11.7%6.8% BNY Median-2.0%5.9%10.8%6.3% BNY 3 rd quartile-2.7%4.0%9.9%5.9%

QPP Returns Compared to Other Canadian University Pension Plans CAUBO survey results, as at December 31, 2014: 14 1 year2 years4 years10 years Queen’s8.5%13.8%9.2%7.0% Assets > $500M*11.5%13.4%9.5%7.1% Assets $150M-$500M*10.1%12.6%8.7%6.8% Assets $30M-$150M*10.4%12.8%8.5%6.9% All Plans Equally Weighted10.8%12.9%9.0%6.9% All Plans Dollar Weighted11.8%13.5%9.1%6.5% * Equally weighted average

Questions? Thank You 15